DENVER--(BUSINESS WIRE)--
Royal Gold, Inc.(NASDAQ:RGLD; TSX:RGL) announces that its wholly
owned subsidiary, RGLD Gold AG (“Royal Gold” or the “Company”), has
entered into a $75 million gold stream transaction with Rubicon Minerals
Corporation (TSX:RMX; NYSE:RBY) (“Rubicon”) that will finance a
significant portion of the construction of the Phoenix Gold Project in
Ontario, Canada.

Stream Transaction Details

Royal Gold will make advance deposit payments totaling $75 million in
five installments over the next 12 months toward the construction of
the Phoenix Gold Project;

Rubicon will deliver 6.30% of any gold produced from the Phoenix Gold
Project until 135,000 ounces have been delivered, and 3.15%
thereafter; and

Royal Gold’s purchase price per ounce will be 25% of the spot price at
time of delivery.

Transaction Highlights for Royal Gold

Stream investment in a high-grade deposit in a renowned gold mining
district

Permitted project and substantially advanced infrastructure

13 year mine life with the resource potential open at depth and along
strike

Experienced management team

Stable political jurisdiction

“The Phoenix gold stream is Royal Gold’s first significant investment in
the Red Lake District,” commented
Tony Jensen
, President and CEO of
Royal Gold. “This area is known for its high-grade gold deposits and
long lived assets. Rubicon’s management team has a history of success in
this district, and we are pleased to assist them in securing a portion
of the financing necessary to complete construction of the Phoenix Gold
Project.”

About the Phoenix Gold Project

The Phoenix Gold Project is located in Red Lake, Ontario, Canada. The
deposit extends 1,650 meters below surface, and remains open at depth
and along strike. Gold production is projected to commence 12-14 months
following the completion of the remaining financing. The Red Lake
greenstone belt is host to one of Canada’s preeminent gold producing
districts, the Red Lake District. Twenty-eight mines in the district
have produced over 26 million ounces of gold since the 1930’s. The
Phoenix Gold Project is located in this belt, which also hosts the Red
Lake and Cochenour mines.

Based on a preliminary economic assessment issued in 2013, Rubicon
projects a total life of mine production of 2.19 million ounces, with
average estimated annual production of 165,300 ounces based on a 13 year
mine life. Preliminary economic assessments do not contain reserves, and
this estimate is based on mineralized material only.

Construction on the Phoenix Gold Project is well-advanced, with its
shaft sinking completed to 730 meters below surface. Civil works are
largely complete, the mill building has been erected, major components
such as SAG and ball mills are onsite, and underground development is
underway.

The advanced deposit from Royal Gold will assist Rubicon in securing the
financing necessary to complete construction of the Phoenix Gold
Project. In addition to Royal Gold’s deposit, Rubicon estimates it will
require approximately $100 million of additional financing to complete
construction, inclusive of corporate expenses. Rubicon had approximately
$78 million in cash and short term investments and no debt at December
31, 2013.

About the Purchase and Sale Agreement

Royal Gold entered into a purchase and sale agreement with Rubicon
wherein Royal Gold will make a $75 million deposit to Rubicon as
prepayment of the purchase price for refined gold, payable in five
installments:

the first installment of $10 million was made in conjunction with
executing definitive documents;

the second installment of $20 million will be paid upon satisfaction
of certain conditions precedent, including the receipt of committed
financing sufficient to complete the Phoenix Gold Project; and

three installments of $15 million payable on March 15, June 15, and
September 15, 2014, subject to satisfaction of certain conditions
precedent.

Rubicon will sell and deliver 6.30% of any gold produced from the
Phoenix Gold Project until 135,000 ounces have been delivered, and 3.15%
thereafter. For each delivery of gold, Royal Gold will pay a purchase
price per ounce of 25% of the spot price of gold at the time of
delivery, subject to the provision outlined below.

Royal Gold’s deposit is secured on the assets of the Phoenix Gold
Project. Rubicon can raise up to $100 million that would rank senior to
the gold stream deposit. In the event that Royal Gold’s interests are
subordinated to more than $50 million, Royal Gold’s per ounce purchase
price will be reduced by the product of 5.4% times the amount of the
senior debt outstanding and drawn in excess of $50 million, divided by
$50 million.

CORPORATE PROFILE

Royal Gold is a precious metals royalty and stream company engaged in
the acquisition and management of precious metal royalties, streams, and
similar production based interests. The Company owns interests on 204
properties on six continents, including interests on 38 producing mines
and 20 development stage projects. Royal Gold is publicly traded on the
NASDAQ Global Select Market under the symbol “RGLD,” and on the Toronto
Stock Exchange under the symbol “RGL.” The Company’s website is located
at www.royalgold.com.

Cautionary “Safe Harbor” Statement Under the Private Securities
Litigation Reform Act of 1995: With the exception of historical
matters, the matters discussed in this press release are forward-looking
statements that involve risks and uncertainties that could cause actual
results to differ materially from projections or estimates contained
herein. Such forward-looking statements include statements about the
Company’s stream transaction with Rubicon minerals. Factors that could
cause actual results to differ materially from the projections include,
among others, precious metals, copper and nickel prices; actual tax
rates; performance of and production at the property; decisions and
activities of the operators of the property; delays in the operators’
securing or their inability to secure necessary governmental permits;
changes in operators’ project parameters and timelines as plans continue
to be refined; economic and market conditions; unanticipated grade,
geological, metallurgical, processing, regulatory and legal or other
problems the operators of the mining properties may encounter;
completion of feasibility studies; the ability of the various operators
to bring projects into production as expected; and other subsequent
events, as well as other factors described in the Company's Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings
with the Securities and Exchange Commission. Most of these factors are
beyond the Company’s ability to predict or control. The Company
disclaims any obligation to update any forward-looking statement made
herein. Readers are cautioned not to put undue reliance on
forward-looking statements.